"Demand? What demand? Nobody buys life insurance -- it has to be sold!"
Advisors who believe this are usually the busiest, but not the most successful. Successful advisors understand that they can make more sales in less time, with less work, by finding people who already want what they are selling. Trying to persuade the undecided is just too difficult. Instead, you can follow an efficient eight-rule process for calling prospects and finding the demand for life insurance, based on the fact that people buy in their own time for their own reasons.
1. Call the right people
Focus on one target market. Advisors who specialize in one target market tend to be far more successful than those who consider everyone to be a prospect. You will quickly become knowledgeable about doing business with people in your target market.
Your prospecting list is extremely important. A list of 750 names in your target market is far more valuable than a random list of 3,000 names. It is advisable to gradually hone your list down to the best 500 names. You will know who to take off the list when you call them.
You can buy a prospecting list from a reputable list broker at a modest cost. It will contain names and telephone numbers for whatever occupation, ethnic group, ages, income range, net-worth, family status and size, etc., within the specific zip codes you want.
If you are calling people at home, your list must be vetted against the state and federal Do Not Call lists every three months. Most list brokers provide that service at a small additional charge. It is not required if you are calling business numbers.
2. Sell what your target market buys
People in each target market tend to buy the same types of insurance. For example, retired people over 60 years old, with net assets (after real estate) of $500,000 and up, typically buy permanent life insurance with long-term care riders, single-premium life, and annuities.
Once you decide on the demographics of your target market, contact the market research department at the insurance carrier you represent. They can tell you what products your market niche is buying.
3. Have the right attitude
Be direct, open, clear and obvious about your purpose.
Be a seeker -- the prospector looking for gold, not the alchemist trying to convert everything into gold. Look in likely places and move on when they don't pan out.
Respect the fact that the buying decision is up to the prospect, not up to you. Think of how you feel when a salesperson tries to make your purchase decision for you.
Begin your conversation by immediately getting down to business. Don't begin with, "Hi, how are you?" That sends the wrong signal. People who want to buy insurance aren't looking for a new friend.
4. Say the right things
Identify yourself and your company. Describe your product as concisely as possible. Ask if this is something they want. Say all of this in 45 words or less -- preferably less. If you're still talking after 45 words, your prospect has probably stopped listening and is getting annoyed.
Avoid saying anything designed to persuade, convince or influence. You're looking for someone who already wants insurance. Anything you say that is meant to influence them will create sales resistance.
How you say these things matters just as much as what you say. Tape yourself when you are prospecting and adjust your presentation so it sounds like your conversational voice. Pay careful attention to your clarity, tone and timing.
5. Ask the right question
The right question is simple: "Is this something you want?" It doesn't ask the prospect to decide if they will buy from you. It asks them whether they want the type of life insurance you are selling, or not.
This question will identify the prospects who have real buying intent, as opposed to those who are merely interested. Do not ask, "Is this something you might want?" You're not looking for a "maybe," and neither is a real buyer.
6. Listen and respect the answer
Only after the prospect says a definite "Yes," should you spend any time talking with them.
You need to be prepared to take "No" for an answer, and to respect that answer. Don't try to turn it into "Yes." Don't even attempt to discuss it.
If the prospect says "No," simply accept it and courteously end the call with "OK, good bye." Don't let any disappointment or frustration color your tone of voice or manner. Always be respectful and professional. This will significantly improve your chances that the same person will say "Yes" on a future call.
If the prospect says "Maybe," remember that you are looking for people who have decided that they want life insurance and want to buy it now. You are not looking for the undecided. Politely end the call and do not spend any time talking with them.
If the prospect asks a specific question about the insurance you are selling that can be answered simply and directly, answer the question. Then, restate your offer and ask again if this is something the prospect wants.
Never hesitate to answer a question about price. A wide price range often works best. For example: "It will cost between $50 and $500 per month, depending upon your specific requirements."
If the prospect asks for general information, get their e-mail address and end the call politely. Then, send them the appropriate e-mail brochure.
If the prospect asks you not to call them again, make sure you comply completely.
If people seem confused about what you're saying and don't understand the question, then your prospecting offer may be too vague. This can also happen if you attempt to sell the benefits of insurance, rather than clearly stating what the insurance is. Most serious buyers are turned off by the enticement of benefits. They just want to know the features.
7. Keep records and move on
After each call, record the results and move on to the next person on your list as quickly as possible. Be persistently disciplined. Set a goal for how often you are going to prospect, and for how long.
Keep a log of how much time you spend prospecting, who you called, what offer you gave them, and what was the result. There is software to manage these details for you, but prospecting manually for a while is a good way to develop a clear picture of what's happening. Tracking results is the best way to improve your methods.
8. Call people again and again
Continue calling the same list. Each individual should hear from you every three to four weeks. Vary your prospecting offers so that you don't repeat yourself. It's best to have a cycle of at least five different prospecting offers, so you can go through all your offers before the prospect hears the first one again.
Being able to take "No" for an answer, respecting the prospect's time, and not being repetitive are the things that will allow you to call again and again. This creates favorable front-of-mind awareness. When the prospect does want life insurance, they will likely think of you, and respond positively to your next call.
People buy in their own time for their own reasons. By following these steps, you'll have a much higher probability of contacting prospects when the time is right.
Jacques Werth is the president of High Probability Selling, Inc. a sales training and consulting company that specializes in designing a customized sales process for each client company.
Carl Ingalls is an engineering consultant who is using the communications principles behind High Probability Selling when advising his clients. You can reach him through his Web site, www.HighProbSell.com, or blog www.HighProbabilitySelling.com.
